Correlation Between Lebenthal Lisanti and Value Fund
Can any of the company-specific risk be diversified away by investing in both Lebenthal Lisanti and Value Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lebenthal Lisanti and Value Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lebenthal Lisanti Small and Value Fund Value, you can compare the effects of market volatilities on Lebenthal Lisanti and Value Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lebenthal Lisanti with a short position of Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lebenthal Lisanti and Value Fund.
Diversification Opportunities for Lebenthal Lisanti and Value Fund
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lebenthal and Value is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Lebenthal Lisanti Small and Value Fund Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund Value and Lebenthal Lisanti is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lebenthal Lisanti Small are associated (or correlated) with Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund Value has no effect on the direction of Lebenthal Lisanti i.e., Lebenthal Lisanti and Value Fund go up and down completely randomly.
Pair Corralation between Lebenthal Lisanti and Value Fund
Assuming the 90 days horizon Lebenthal Lisanti Small is expected to generate 2.22 times more return on investment than Value Fund. However, Lebenthal Lisanti is 2.22 times more volatile than Value Fund Value. It trades about 0.31 of its potential returns per unit of risk. Value Fund Value is currently generating about 0.36 per unit of risk. If you would invest 2,026 in Lebenthal Lisanti Small on September 1, 2024 and sell it today you would earn a total of 219.00 from holding Lebenthal Lisanti Small or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lebenthal Lisanti Small vs. Value Fund Value
Performance |
| Timeline |
| Lebenthal Lisanti Small |
| Value Fund Value |
Lebenthal Lisanti and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lebenthal Lisanti and Value Fund
The main advantage of trading using opposite Lebenthal Lisanti and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lebenthal Lisanti position performs unexpectedly, Value Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Value Fund will offset losses from the drop in Value Fund's long position.| Lebenthal Lisanti vs. Lord Abbett Growth | Lebenthal Lisanti vs. Queens Road Small | Lebenthal Lisanti vs. Eaton Vance Large Cap |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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